On Saturday, Berkshire Hathaway released financial results for the second quarter. Operating income increased by 7% to $10,043 million, reflecting excellent growth in the investment business. Investment and derivative gains for the corporation underwent a major turnaround, going from a loss of $(53,038) million to a gain of $25,869 for the quarter ending in June 2023.
Strong operational income and investment gains increased net earnings to $35,912 million, a notable increase of 182% from the loss of $(43,621) in the same quarter of the previous fiscal year. Overall, Berkshire Hathaway saw growth of 287% in the first half of 2023, reaching $71,416 million from a net loss of $(38,041) million during the same period in the previous year.
By the end of the second quarter, the company’s cash reserves had reached an all-time high of $147.3 billion. This amount of cash at Berkshire Hathaway surpasses the previous record of $130.6 billion set in the first quarter to become the company’s all-time high.
“During the second quarter of 2023, approximately $1.4 billion was used to repurchase Berkshire shares, bringing the six-month total to $5.8 billion. There were 1,447,541 outstanding Class A equivalent shares as of June 30, 2023. According to a press release from Berkshire Hathaway, as of June 30, 2023, the insurance float—the net liabilities we take on under insurance contracts—was around $166 billion, up about $2 billion from year-end 2022.
In terms of segments, the insurance industry significantly increased Berkshire Hathaway’s operational earnings; insurance underwriting increased 74%, from $715 million in the same quarter last fiscal year to $1,247 million this fiscal year. The income from insurance and investments increased as well, going from $1,906 million in Q2FY23 to $2,369 million in Q2FY24.
In Q2, Berkshire Hathaway Energy Company’s earnings decreased slightly from $789 million to $785 million.
